Turkey Telecommunications Report Q4 2012 - New Study Released

New Fixed Networks research report from Business Monitor International is now available from Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 27 October 2012

BMI View: Turkey's telecommunications markets contains significant growth potential, with a low penetration rates and high growth in both the mobile and broadband markets. Although the market continues to be held back by high taxation, the wireless data market in particular is a regional outperformer and, with ongoing operator investment, we believe it will remain among the most dynamic in the region. However, there is still significant risk of a macroeconomic slowdown with Turkey exposed to external risk factors, which would have a negative impact on the sector's developmental trajectory.

Key Data:

- The fixed-line sector experienced weaker-than-expected growth in Q112, according to data from ICTA, with a y-o-y decline of 7.1%. Consequently BMI's five-year forecast has been revised downwards this quarter.
- The mobile market has continued to exhibit strong growth, with y-o-y increases in both subscriptions and ARPU in Q112.
- The broadband market has maintained its position as one of the fastest growing in Europe - up 19.7% y-o-y. Fixed broadband growth was robust y-o-y to Q112; however, dedicated mobile broadband was the real engine of growth, increasing to 1.781mn subscriptions.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/464564_turkey_telecommunications_report_q4_2012.aspx) (http://www.fastmr.com/prod/464564_turkey_telecommunications_report_q4_2012.aspx)

Key Trends And Developments

The Turkish wireless data market continues to be the most dynamic segment of the telecoms market. Uptake of dedicated mobile broadband services has been strong - presenting a challenge to wireline operators. Smartphones have also been expanding as a share of the mobile market, helping drive VAS revenues and pre to postpaid migration. A key trend is operator competition based on network infrastructure. Mobile market leader Turkcell reported 88% population coverage for its 3G services in Q411 from a network of 10,500 base stations, all supported by its fibre subsidiary's fibre network for backhaul purposes and reportedly aims to double its maximum speed from 42.2Mbps to 84.4Mbps in 2012. Turkcell's rivals Vodafone and Avea have also been investing heavily in network infrastructure, drawing on cost synergies with the wireline units.

Turkey's machine-to-machine (M2M) market has begun to see significant development including services in transportation, connected home, telehealth, smart metering and industrial processes. Turkcell announced it had 750,000 SIMs on its own M2M platform in March 2012, and stated that it estimated the total Turkish M2M market could ultimately reach 150mn SIMs. We believe the market will receive a significant boost from the news in July 2012 that the Turkish government has exempted M2M SIMs from taxes levied on new subscriptions (mobile customers pay TRY37 for a new SIM connection). M2M is a lower ARPU business than consumer mobile, and as such we believe the tax had dampened demand, so expect a growth spurt in H212 and 2013.

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